BT Group flagged tough conditions in the consumer market as revenue declined in fiscal Q3 2022 (calendar Q4), although CEO Philip Jansen reaffirmed the company’s outlook for the year despite inflationary and energy headwinds.
In a trading update for the nine months to 31 December 2022, the company reported a 3 per cent quarterly revenue decline year-on-year to £5.2 billion. Its consumer division was the hardest hit, declining 6 per cent to £2.4 billion, attributed to the disposal of its BT Sport unit which offset service revenue growth.
Service revenue was boosted by a contractual price rise, along with higher roaming, which offset lower mobile equipment sales.
Revenue from enterprise dropped 3 per cent to £1.2 billion, due to the “migration of a MVNO customer” and legacy product declines, partly offset by growth in its SME offering.
Global business revenue decreased 2 per cent to £857 million on lower equipment sales and the impact of divestments in the previous year.
Openreach was a bright spot, with revenue up 5 per cent due to price increases, and sales of fibre and ethernet products.
The company did not break out a net profit figure for the quarter.
Outlook in sight
Despite revenue struggles, Jansen said BT was being transformed for its customers, pointing to an acceleration in next-generation network investments along with an ongoing restructure to combine enterprise and global to create BT Business, a single B2B unit.
He also said the company was “going further on cutting costs” to deliver its target of £3 billion in annualised savings by full year 2025.
“Despite extraordinary energy costs and other inflationary headwinds, we are reaffirming our outlook for the year.”Subscribe to our daily newsletter Back